Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 202 - REVENUE OBLIGATION SECURITIES PROGRAM
Section 457-202-1 - Eligible Projects

Universal Citation: 94 ME Code Rules ยง 457-202-1

Current through 2024-38, September 18, 2024

A. General. Projects are eligible for approval if they satisfy the requirements of the Finance Authority of Maine Act, 10 M.R.S.A. §961 and following (the Act), and other applicable law. Allocation of the State Ceiling imposed on the issuance of tax-exempt bonds is governed by Chapter 203 - Allocation of State Ceiling on Private Activity Bonds. Allocation of the national limitation on Recovery Zone Facility Bonds and Qualified Energy Conservation Bonds is governed by 10 MRSA §§1074-A and 1074-B, respectively, and the provisions of this Rule.

B.[Repealed]

C.[Repealed]

C-1. Major Business Expansion Projects. A project is eligible as a major business expansion project if it is any building, structure, machinery, equipment or facility proposed to be constructed, rehabilitated, expanded, modernized or acquired in the State by a business entity, that has a projected cost of $1,000,000 or more, that is projected to result in, directly or indirectly, a net gain of at least fifty (50) job opportunities within the State or the retention of at least fifty (50) jobs or a combination of at least fifty (50) jobs created or retained, and that benefits from financing assistance from the Authority pursuant to this rule including use of a capital reserve fund. A major business expansion project does not include electric rate stabilization projects, energy distribution system projects, or projects primarily involved in the provision of housing or retail sales to consumers. Financing assistance to a major business expansion project pursuant to this rule may not exceed $25,000,000.
C-2. Energy Distribution System Projects. A project is eligible as an energy distribution system project if it is an energy distribution system owned, in whole or in part, by an individual, municipality, corporation or other governmental entity or business association, that: (1) uses biomass, peat, solar, waste, water and related dams, wind, wood or coal, or (2) distributes or transmits oil, biofuels, propane, compressed natural gas, liquefied natural gas or natural gas. Financing assistance to any one energy distribution system project pursuant to this rule may not exceed $65,000,000. To be effective, a certificate of approval for an energy distribution system project must be issued, and the revenue obligation securities for such project must be issued (except for refunding securities issued solely to refund outstanding securities), prior to January 1, 2018.

D. Reasonable Expectation. At the time of issuance of the certificates of approval, the chief executive officer will determine whether a proposed project is an eligible project within the meaning of the Act. The chief executive officer's determination will be based on the reasonable expectations of projected use of the project set forth in the application and any additional documents required by the chief executive officer. A certificate of approval issued pursuant to this Rule and the Act shall be conclusive proof that a project is an eligible project within the meaning of the Act, but may not be relied upon as a determination that interest on the securities is exempt from Federal and State income taxation. The chief executive officer may issue a certificate of approval with conditions regarding the project or use of the project if he deems it necessary or desirable to ensure that the project is eligible.

E. Priority as to certain projects. Allocation of any national limitation on the issuance of bonds requiring allocation pursuant to Chapter 203 shall be awarded as provided in such Rule. For all other bonds, allocations shall be awarded on a first come, first served basis, with the following qualifications:

1 In the case of Recovery Zone Facility Bonds, allocations must comply with 10 MRSA §1074-A;

2 In the case of Recovery Zone Facility Bonds, in the event the Authority determines that the national allocation for the entire state is likely to be insufficient to allow award to all eligible applicants, the Authority may reserve allocations for certain projects regardless of order of application if the Authority determines in its discretion that such reservation is necessary to assure a reasonable geographic distribution of projects within the state.

3 In the case of bonds for energy distribution system projects, allocations of the amount permitted to be issued under 10 MRSA §1053(6)(A) shall be made upon issuance on a first come, first served basis, provided that the authority may reserve allocations to projects in advance of issuance if such projects have submitted a completed application that has been fully approved by the authority, for a period expiring at the earlier of: (a) the date upon which the project suffers a material adverse change, as determined by the authority; (b) the date upon which a material condition of issuance becomes reasonably unlikely to be fulfilled by the applicant within a year of the reservation, as determined by the authority; (c) the date which is 12 months from the date of the reservation; and (d) December 31, 2017.

4 In the case of bonds for major business expansion projects, allocations of the amount permitted to be issued under 10 MRSA §1053(6)(B) shall be made upon issuance on a first come, first served basis.

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